With Guyana’s oil industry rapidly expanding and production set to surpass 750,000 barrels per day by 2026, the focus on avoiding the dreaded ‘resource curse’ continues to engage public attention. This has seen diversification of the economy being put forward as a key action point for the country to pursue.
U.S Ambassador to Guyana, Sarah-Ann Lynch, says that while oil bodes well for Guyana’s future, investment in value-added products and other traditional sectors is the answer to preventing Guyana from becoming a victim of the ‘resource curse’.
On March 8, while speaking during a forum hosted by Women in Oil and Gas Guyana, under the theme, ‘Women on the move – accepting new challenges in a changing economy,’ the U.S Ambassador repeated the mantra that ‘Guyana is open for business’, however, she reminded that keen attention must be placed on the development and investment into other economic sectors.
“Obviously, the biggest draw out is in the oil and gas sector, particularly in exploration and services but there are also significant opportunities in the renewable energy, financial, construction, agriculture and tourism sectors. Guyana and the private sector must capitalise on this,” she stated.
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According to Ambassador Lynch, “If Guyana can advance from being a raw material producer to exporting more value-added goods, it will achieve a necessary diversification of its economy.”
This call for diversification is one that is common among all factions–local institutions, government, and regional and international entities. Organisations, including the Guyana Manufacturing and Services Association, the Private Sector Commission, and the American Chamber of Commerce Guyana have all been pressing the Guyana government to put a razor-sharp focus on building other sectors of the economy. In fact, the government has also adapted that stance with the minister with responsibility for finance, Dr. Ashni Singh on record as saying, “While looking ahead, a lot of growth in the economy will be driven by the oil and gas sector. We place a lot of importance, as a government on ensuring that the economy is diversified, and non-oil sources of growth continue to be very strong.”
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The U.S Ambassador in reiterating the importance of a diversified economy emphasised, “This will enable it to avoid the dreaded resource curse that has plagued many developing countries with newly-discovered natural resources.”
